Fortune basks in Apple’s retail glow

Fortune magazine takes a look back at the creation of Apple's retail stores, …

Fortune has a fascinating look at how Apple was able to create an astonishingly successful retail presence at a time when most retailers were scaling back their retail stores. (Anybody remember Gateway Country?) This quote from TheStreet.com in 2001, when Apple first announced its retail strategy, nicely illustrates the feeling of most analysts at the time: "I give [Apple] two years before they're turning out the lights on a very painful and expensive mistake." Six years later Fortune magazine has declared Apple the best retailer in America.

The article is chock full of interesting tidbits. Former Gap CEO Mickey Drexler was pulled in to lead the retail initiative and decided that step one was to rent a warehouse and build a prototype of the store. This strategy paid out big in the end as they realized that their first prototype was organized "by how the company was organized internally, not by how a customer might actually want to buy things." "We were like, 'Oh, God, we're screwed!'" said Jobs.

Another key feature of the Apple stores came from former Target merchandising chief Ron Johnson.

As an icebreaker, we said, "Tell us about the best service experience you've ever had." Of the 18 people, 16 said it was in a hotel. This was unexpected. But of course: The concierge desk at a hotel isn't selling anything; it's there to help. "We said, 'Well, how do we create a store that has the friendliness of a Four Seasons Hotel?'" The answer: "Let's put a bar in our stores. But instead of dispensing alcohol, we dispense advice."

In addition to the trip down memory lane, the article has some fairly impressive stats on the current state of the Apple retail stores.

Apple earns just over $4,000 per square foot of retail space. Compare that to Best Buy, which brings in just $930 per square foot and is considered "tops for electronics retailers."

The average Apple store has nearly 14,000 visitors a week. The Fifth Avenue store brings in close to 50,000.

Last year's sales were nearly $1 billion a quarter.

While the fiscal success of the Apple stores is undeniable, the Apple stores certainly have their share of detractors. Especially worrisome for some is the fear that Apple stores will become essentially iPod stores, something already affecting the the quality of the Genius Bar according to some. What do you guys think? Share your stories of woe or triumph from an Apple store in the comments.